ClickCease Starting Consignment Sales Guidelines - Stealth Agents
Starting consignment sales guidelines

Starting Consignment Sales Guidelines

If you are an aspiring seller who has no capital but wants to experience the business world, then study consignment sales first before diving into consignment selling.


In this blog, you may know the meaning of consignment sales, How does consignment sale work?


What are the drawbacks of consignment selling?


Learn how to find the right consignment store and the good products for consignment selling.


Figure out this guideline on preparing yourself to onboard on consignment sales.

What is meant by consignment sales?

Consignment sales is a business arrangement in which a seller (consignor) wants to entrust goods or products to another store owner (consignee) with an agreement. In this arrangement, the consignor still owns the product until they are sold, and the consignee gets paid by getting a fee or a share of the sale of the consignor’s product, according to the agreement of both the consignor and consignee. In short, consignment sales means a third party entrusted to sell a product instead of the owner through an agreement on consignment selling.

How do you explain consignment sales?

To fully understand how consignment sales work. Read below the process or how it works and things to be considered when choosing consignment selling without conflict to both parties. 

Agreement with signature

 The consignor (the person who owns the items) and the consignee (the person or store selling the items) agree to the terms of the consignment arrangement, but whatever the agreement of both parties must be signed to make the deal sealed and legit.


Moreover, include details such as the type of items to be sold, pricing, commission rates, and the duration of the consignment period.

Item drop-off

 The consignor delivers the items they want to sell to the consignee’s store location. Upon delivery, the consignee must inspect the quality, number of items and selling price with the consignor.



Display and sale

 After inspecting the quality and quantity, the consignee displays the items in their store window or online to make them available for potential buyers. In addition, they may also increase the range of the market through social media advantage to attract more customers.

Sale and payment 

According to the agreement between the consignor and consignee, when an item is sold, the consignee processes the transaction and keeps a percentage of the sale price as a commission. Moreover, the remaining amount is given to the consignor as payment for the sold item after deducting any applicable fees or expenses.

Unsold items 

If some items remain unsold after the consignment period ends, the consignor may choose to retrieve them or extend the consignment period. Sometimes, the consignee may offer to return the unsold items to the consignor or donate them to charity, depending on the prior agreement.


At the end of the consignment period, the consignee provides the consignor with a detailed sales report, the records of items sold, and the corresponding payments. Furthermore, the consignor receives the proceeds from the sold items minus the agreed-upon commission and other applicable fees.

Finding the right consignment store

To find a good consignment store or online place to sell your things, start by looking around and understanding their rules. Make sure the store is popular with people who would like your stuff to sell. In addition, it’s good to know what others say about it. Also, you may ask if they can help you tell more people about your things. Most importantly, check how they’ll pay you and what happens if your things don’t sell or someone returns them. Make use of the time; don’t rush in choosing the right place and store. Always understand the agreement, and if there is a misunderstanding, talk to the store owner. Furthermore, ask opinions from others who have sold things already to gather ideas. 

Types of products to sell for consignment

You must choose valuable products to sell so they will not be wasted just displaying for an extended time. Get to know what the customer needs so that you can display and be seen directly from the intended audience.

Baby stuff 

There are sentimental values of your baby’s stuff, but some parents prefer to resell, especially expensive baby stuff such as cribs, swings, walkers, and strollers. Instead of dumping it, you can sell it for consignment and free your space. 


Some countries prefer selling their furniture in consignment sales to repay the expense or redecorate their houses. Also, buyers prefer to buy second-hand types of furniture than buying new one because it is cheaper than the usual furniture displayed in malls.


Starting consignment sales guidelines

Among other products to sell on consignment sales, these are the precious ones, and there are intended audiences eying for pieces of jewelry that are also one of a kind, and you may also sell it to auctions. You’ll never know that your precious jewelry pieces have a higher price. 

Sports equipment 

In consignment sales, it is a good choice because there are people who prefer second-hand items to brand new. Aside from that, sports equipment with an autograph is a different story. They may be worth more than their original price as time goes by because there are individual who collects such sports equipment from famous people. 


Starting consignment sales guidelines

It is unique and limited, and vintage pieces stand out as one-of-a-kind treasures in consignment sales. There are collectors and antique hunters who see it as a treasure. Consigning vintage goods is sustainable and eco-friendly shopping because there are shoppers who reuse and repurpose the vintage products.


Books are great for consignment sales because they are always popular. Whether it’s old stories or new facts, there’s something for everyone. Selling used books at consignment stores is a good idea for everyone who can’t afford them. 


Almost every consignment store displays sweaters, gowns, pants, and dresses. Some customers prefer thrift clothes over brand new. Aside from being cheap, they can recreate new garments. 




Starting consignment sales guidelines

There are many trendy shoes from malls and popular stores, but shoes from consignment sales are genuine leathers that are hardly made with love. Although some of it is repaired, it can be useful and look cooler. 

Musical instrument 

Some passionate people love music but are not fortunate enough to buy one. However, selling musical instruments that are in good condition or even not. Well, they can fix that and sell it for consignment sale. As a result, you can make someone happy and make someone’s passionate music dream come true. 

Risk of consignment sales 

If you consider consignment selling your goods that have been unused for years, be mindful of the setbacks. You must let go of the sentimental value to recover your space. Every business has a risk taken. Here are some of it for you to prepare plan B as you plan for the consignment sale agreement

1. Piled inventory

Sometimes, as a consignment owner, you may need help with inventory, which might be tricky, leading to issues like misplaced items or unaccounted stock. It may cause trouble for both parties. 

2. Overdue rent 

There are kinds of consignment selling that are renting from a van. It will cost you a financial burden for rent out if goods are unsold, and maintenance might strain the budget, especially if sales are slower than anticipated. Therefore, expect the unexpected for consignment sales. 

3. Dependent on store

You’ll rely so much on how consistent the consignor’s production and supply, which are sometimes vulnerable to any unexpected disruptions, impacting your ability to meet customer demands.

4. Not following the agreement

Vague or poorly defined consignment agreements might result in misunderstandings, especially regarding payment terms, pricing, or responsibilities in case of damaged or lost inventory.

5. Competitors

Instant changes in consumer preferences or market trends can lead to sudden shifts in demand, potentially leaving you with surplus inventory that may be difficult to sell. The increase in competition can make it challenging to stand out, which might have an impact on selling consigned goods and a decrease in sales. But, don’t worry. There are ways to resolve it, like using the BANT sales approach to boost sales and recover the decreasing number of customers.

6. Fraud consignee

You should select a trusted consignee to minimize being tricked by the store owner. It will lead to inadequate inventory tracking systems with discrepancies in product selling, which might be lost or a fraud consignee.

7. Miscommunication 

Lack of effective communication between the consignor and the consignee can create misunderstandings, delays, and confusion in the consignment process. You do not like that, so maintain a good balance with the consignee


Take note of every strategy you’ve used. If it is not working, try to explore go to market strategy framework before making decisions because it is wiser to plan than to decide on your own without proper plans. Just like playing cheese, be street-wise to increase your sales. Also, make use of the 7 functions of marketing to help your consignment sales increase. Therefore, following these guidelines is your key to being on top of the competition, the possibilities of consignment sale, and things to be considered so


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